THORChain's $200M Debt Crisis: A Bold Equity Token Solution

THORChain, a decentralized exchange (DEX) platform, is facing a significant debt crisis, with a total debt of $200 million. In an effort to address this issue, the platform's governing body has proposed a solution to convert defaulted debt into equity tokens.

The approved plan involves issuing a new token, called TCY, to creditors. Holders of TCY tokens will have the right to permanently receive 10% of THORChain's revenue. This move aims to restructure the debt and provide a sustainable path forward for the platform.

The debt crisis has been a major challenge for THORChain, which has been working to address the issue and restore confidence in the platform. The conversion of debt into equity tokens is a significant step in this process, and it remains to be seen how the market will react to this development.

The cryptocurrency market has been volatile in recent months, with many platforms facing similar challenges. THORChain's debt crisis is just one example of the difficulties faced by decentralized exchanges in the current market conditions.